Recent Offers in the Marcellus Shale

State your

1. State
2. County
2. Lease Bonus Offer
3. Royalty %
4. Terms (length of the lease)

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Permalink Reply by Elnathan Cory on November 30, 2010 at 5:33am
Thanks, I'll talk to her today.
Permalink Reply by Elnathan Cory on December 6, 2010 at 3:40am
She said that they said it was too much money! She has a meeting with them this week. I'll let you all know what happens.
Permalink Reply by Sam Douglass on November 30, 2010 at 1:59pm
It is not infrequent that these companies do this. Range has everyone sign a letter telling Lessor it might not accept the lease for any reason or no reason. Most of the companies seem to think it is an imposition for the operator to sign the lease and accept it and most people get the idea from somewhere that everything will be OK once title is checked. Try to at least get a nonrefundable deposit for your time and trouble and any attorney's fees when you sign and deliver the lease.

Try to find out if the lease was rejected by reason of title deficiency - you do not own the gas or it is already leased to others. Other than that there may not be much you can do but wait for the next offer.

In Greene and Washington County they signed up a lot of people at one price, scared them by telling them leases were cancelled and then renegotiated for better terms for the Lessee.
Permalink Reply by Brett R Oxley on December 3, 2010 at 5:19am
The lease I signed has a confindentiality clause in it. I am concerned that if I answer your five questions I may be violating and thereby negating the lease. The well being drilled on Newton Falls Rd is in my backyard, on my neighbors property.
Permalink Reply by Bryan D. Huwar on December 3, 2010 at 5:36am
Yeah, I would definitely be on the conservative side given the confidentiality clause - especially if you're not using an alias!






Please read my above DISCLAIMER.
Permalink Reply by Brett R Oxley on December 3, 2010 at 5:59am
I have always beleived in being honest with people, unfortunately that is a naive approach in today's business world. I have been reading others posts on here and now beginning to beleieve I have been had by the leasing agent. They are drilling a very large well on my neighbors adjacent farm property. I have a very small (compared to most) piece of land adjacent to the well.

A company agent has been to alll of the neighbors houses and allegedly signed them up. The price I heard that my neighbors got was in the $850.00 per acre range and appx. 12% of the royalties. Based on what others in these forums are discussing that seems pretty low.

The drilling rig they have operating is a 100 feet talll and has been running 24/7 for over four weeks now. No water sampling of my well was done or offered by the drilling compnay. I wonder what steps should I take to protect my property.

I am becoming increasingly worried that all of us in the area have been had, especially since the drilling company has clearly invested more than a few million dollars in this rig and the drilling operations.
Permalink Reply by Bryan D. Huwar on December 3, 2010 at 6:19am
To be honest, "Honesty" is not a word that I've heard in the context of this Wild West gas boom - that is unless it's used with the prefix "dis-". The only thing you have to go on are the black letters on the white paper and if it's not spelled out there or it's ambiguous, then an ankle-grabbing will be in order at some point down the road. That's why I've written, among other things of course, in this forum that a person would be much smarter to get 14% or 15% at the point of sale (or even the wellhead if that's all you can get) with no deductions for anything (except taxes), rather than accept an 18% royalty at the point of sale and permitting deductions of all kinds. You're much better off knowing exactly what you're entitled to even if it's less because in the end you'll probably net more. In order to judge your royalty and bonus (which don't sound that good no matter what) better, what county are you in?





Please read my above DISCLAIMER.
Permalink Reply by Brett R Oxley on December 3, 2010 at 6:32am
Bryan, based on the e-mail linking here, I am assuming you are asking (me) what county I am in . I am in the NW corner of Mahoning County, Ohio, literaly across the street from me is Trumbull County to my North.

From what I am beginning to understand and trying to get better educated about it seems, that in regarding the terms of the lease, price per acre is miniscule in comparison to the terms of the lease regarding royalties, taxation, bonuses.

I was reading another forum that estate planning may be a real necessity for me as I have four sons all in the military now, myself retired, and I do not want to burden them or down the line cause them to be cheated.

I need a greater education on the entire oil/gas drilling, property rights, leasing issues. A real crash course, since they are drilling right now.
Permalink Reply by Bryan D. Huwar on December 3, 2010 at 6:51am
Sounds like you're being pretty smart about things. I would be very deliberate because you're going to be stuck with whatever you sign for a VERY long time. I would look into landowner groups if they're around in your area - and be picky about which one you ultimately choose. You can definitely get yourself educated on the Marcellus - and the deep gas in general - because there's a ton of good information on the web. Plus I would highly recommend the Marcellus Summit, which is held each year at Penn State. It's very reasonable at $385 for the two days, which includes breakfast and lunch. The room rates are reduced, too. I'd check out Penn State's site as well: http://extension.psu.edu/naturalgas
Permalink Reply by Joe Smith on December 3, 2010 at 6:38am
Yes, you have been had. Thousands of others have too!!! Take action to save your water now. My sister-in-law just lost her water and the company will say it was just a coincidence. You need to get a water test done in conjunction with the Gas Company so it is a non biased test. It will cost over 200 dollars, but it will document the condition of your water prior to contamination. Note: Contamination is happening some how some way on numerous occasions. You may be able to have a leg to stand on later when it is time to get a water well drilled by the company. Hey, I just read today that a land men went to a nursing home and signed up a 94 year old resident for her 100+ acres and yes the deal is one of the lowest on record.
Permalink Reply by Brett R Oxley on December 3, 2010 at 6:47am
Joe, Thank you for your reply.

Fortunately for me I work with three environmental government staffers, that can get me linked up with a certified inspection company.
Permalink Reply by Bryan D. Huwar on December 3, 2010 at 6:53am
Joe,

Good advice on the water. I'm not surprised about the landman, well maybe a little - I'm surprised he didn't buy it off of the poor old fella!

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